Expectation Document

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2 columns, Now is the time for all good men to come to the aid of their country.

Now is the time for all good men to come

Now is the time for all good men to come to the aid of the country. Half haste helps, but whole haste hinders.

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BACKGROUND:

The cost of single health insurance coverage is increasing in FY 2003; therefore, a recommendation is made to increase Carousel Points to cover the increased cost of the lowest-cost single coverage Health Plan.

IAFF bargaining unit employees will receive additional Carousel Points in FY 2003 based on contract provisions, which increase Carousel Points by the increased cost of the lowest-cost single coverage health plan plus 1,550 points.

CWA bargaining unit employees receive 100% of single coverage or 75% of Dual or Family coverage if selected.

The PBA contract is still being negotiated, but the City has offered the PBA bargaining unit the same plan as the CWA contract.

Based on Commission direction, staff has prepared the following table which provides a basis for calculating Carousel Benefit Points for each employee group. The types of benefits and percentages can be changed at the direction of the City Commission and are presented for discussion purposes only. The total points for each group reflect a 900 point increase over FY 2002 amounts (except for Elected Officials), which is equivalent to the increase in healthcare premiums for the lowest-cost single coverage.

CAROUSEL BENEFIT PROGRAM
Benefit	P/T	OM	EM	EO
PART A - Non-Health Benefits:
Dental Coverage	140	140	140	140
Personal Option Days ²	420	645	1,020	0
Supplemental Insurance ³	150	300	450	450
Deferred Compensation	405	1,230	2,205	0
Non-Health Benefits Sub-Total	1,115	2,315	3,815	590
PART B - Health Benefits FY 2003:
Health Insurance *	4,835	4,835	4,835	4,835
Total	5,950	7,150	8,650	5,425

Based on Lowest-Cost Plan - 75% of Family Coverage

² Based on Average Salary of Each Employee Group - 3 days (Equal to CWA Benefit)

³ Based on Average Age (45 - 49) - P/T $50,000; OM $100,000; EM/EO $150,000

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MILES OF STREETS	142

FIRE PROTECTION	Number of Stations	6

Number of Sworn Firefighters	132

POLICE PROTECTION	Number of Stations	1

Number of Sworn Officers	126

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Healthcare Industry Trends

Nationwide, healthcare increases continue to be well into double digits, with increases of 18% to 20% being common. City of Largo healthcare premiums have been relatively low; therefore, increases have been higher than average as the City's premiums have increased to average levels. Most health plans around the country have implemented cost savings techniques such as raising co-pays and implementing Pharmacy Benefit Managers in order to better control costs.

Innovative healthcare plan options, such as consumer directed plans, are being considered by many employers, but have not been widely implemented. Consumer directed plans act similar to defined contribution retirement plans, where employees are provided certain funds for health care costs, above which employees become subject to out of pocket payments.

These type plans include catastrophic healthcare coverage for all members; however, these plans reward employees who do not utilize healthcare services by shifting more costs to employees who utilize healthcare services, which can create a financial burden for certain employees.